Question

In each of the following cases, indicate the principle that appears to have been violated: Case A For its factory equipment, Unrequited Love Inc. used accelerated depreciation in 20X2; straight- line in 20X3; and accelerated in 20X4. Case B Aaronist Ltd. sold a tract of land on credit by accepting a $ 55,000, two- year, non- interest- bearing note. The land account was credited (and notes receivable was debited) for $ 55,000. The going rate of interest was 10%. Case C JED Inc. always issues its annual financial report nine months after the end of the annual reporting period to ensure greater accuracy. Case D Idiomatic Inc. always recognizes its sales revenue when received in cash. Case E RBJ Corporation records interest income only on the payment dates. Case F Loran Company includes among its financial statement elements an apartment building owned and operated by the owner of the company. Case G The Adam Ltd. CEO refuses to permit the company to use notes or supplementary schedules in its financial reports because he believes that the financial statements are self- explanatory.



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  • CreatedFebruary 17, 2015
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